Tuesday, November 30, 2021
HomeRBIPenalty Rs. 10,000 on ATM soon, for non-replenishment with cash

Penalty Rs. 10,000 on ATM soon, for non-replenishment with cash

RBI to impose Penalty Rs. 10,000 soon, for non-replenishment of ATMs with cash

Key Highlights:

  • Banks to be fined for non-availability of cash in ATMs.
  • The RBI will start imposing penalties on banks in case the ATMs remain out-of-cash for a total period of 10 hours in a month from October 1, 2021, onwards.
  • Banks will have to submit a system-generated statement on the downtime of ATMs due to the non-replenishment of cash to the RBI.
  • The bank, may, at its discretion, recover the penalty from the WLA operator.

Reserve Bank of India (RBI) vide notification no. RBI/2021-22/84 DCM (RMMT) No.S153/11.01.01/2021-22 dated 10th day of August 2021, issued notification regarding Monitoring of Availability of Cash in ATMs. In the case of White Label ATMs (WLAs), the penalty would be charged to the bank which is meeting the cash requirement of that particular WLA.

The RBI has now decided that the banks or white label ATM operators (WLAOs) shall strengthen their systems/mechanisms to monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-outs. Any non-compliance in this regard shall be viewed seriously and shall attract monetary penalty as per the “scheme of penalty for non-replenishment of ATMs”.

Scheme of Penalty for non-replenishment of ATMs

  • Effective Date

The Scheme shall be effective from October 01, 2021. Therefore, banks/ WLAOs should put in place a robust system for monitoring the availability of cash in ATMs and ensure timely replenishment to avoid cash-outs.

  • Condition for counting instances of cash-outs in an ATM

When the customer is not able to withdraw cash due to the non-availability of cash in a particular ATM.

  • Procedure

Banks (lenders) shall submit a system-generated statement on the downtime of ATMs due to non- replenishment of cash to the Issue Department of RBI under whose jurisdiction these ATMs are located. In the case of WLAOs, the banks which are meeting their cash requirement shall furnish a separate statement on behalf of WLAOs on cash-out of such ATMs due to non-replenishment of cash. Such statements shall be submitted every month within five days of the following month i.e., first such statement for the month of October 2021 shall be submitted on or before November 05, 2021, to the Issue Department concerned.

  • Quantum of Penalty

Cash-out at any ATM of more than ten hours in a month will attract a flat penalty of ₹ 10,000/- per ATM. In the case of White Label ATMs (WLAs), the penalty would be charged to the bank which is meeting the cash requirement of that particular WLA. The bank, may, at its discretion, recover the penalty from the WLA operator.

The inconvenience caused to the public due to the non-availability of cash in ATMs led the central bank to take this decision. “The ‘Scheme of Penalty for Non-replenishment of ATMs’ has been formulated to ensure that sufficient cash is available to the public through ATMs.

CS Lalit Rajputhttp://enlightengovernance.blogspot.com/
Company Secretary having 5 years of post-qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms, and LLP.

Leave a Reply

Follow Us

2,057FansLike
924FollowersFollow
52FollowersFollow
spot_img

Recent Posts

PLI

PLI scheme for the Pharmaceutical Sector

0
“Worth Rs 15, 000 crore incentives for Pharma Industry” A Production-Linked Incentive, or PLI scheme, provides incentives in the form of tax rebates, import and...
Income tax

All you need to know about the new annual information statement (AIS)

0
The income-tax department has rolled out the new Annual Information Statement (AIS) in the Compliance section of the Income-tax portal, with the aim of...
Tax Return

Don’t skip this step to avoid rejection of your tax refund Filling ITR

0
 If you pay more tax than she is liable for in a financial year through excess tax deducted at source (TDS) or miscalculation in...
ITR

ITR filing process ends with receipt of intimation notice under section 143(1) – Here’s...

0
Many taxpayers are of the opinion that the process of filing income tax return (ITR) ends once they verify their tax returns. However, actually,...
Income tax

Income Tax e-settlement scheme, 2021 – Overview

0
The Board of Direct Taxes (Income Tax Department) vide Notification No. 129/2021/ F.No. 370142/52/2021-TPL (Part IV) dated 01.11.2021, in exercise of its power under...

Most Popular

%d bloggers like this: